Global Business Today

Tittle
Contents
PART ONE Introduction and Overview
	Chapter One Globalization
		Opening Case: The Globalization of Starbucks
		Introduction
		What Is Globalization
			The Globalization of Markets
			The Globalization of Production
		The Emergence of Global Institutions
		Drivers of Globalization
			Declining Trade and Investment Barriers
			The Role of Technological Change
		The Changing Demographics of the Global Economy
			The Changing World Output and World Trade Picture
			The Changing Foreign Direct Investment Picture
			The Changing Nature of the Multinational Enterprise
			The Changing World Order
			The Global Economy of the Twenty- First Century
		The Globalization Debate
			Antiglobalization Protests
			Globalization, Jobs, and Income
			Globalization, Labor Policies, and the Environment
			Globalization and National Sovereignty
			Globalization and the World’s Poor
		Managing in the Global Marketplace
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: The Globalization of Health Care
PART TWO Country Differences
	Chapter Two National Differences in Political Economy
		Opening Case: The Polish Surprise
		Introduction
		Political Systems
			Collectivism and Individualism
			Democracy and Totalitarianism
		Economic Systems
			Market Economy
			Command Economy
			Mixed Economy
		Legal Systems
			Different Legal Systems
			Differences in Contract Law
			Property Rights and Corruption
			The Protection of Intellectual Property
			Product Safety and Product Liability
		The Determinants of Economic Development
			Differences in Economic Development
			Broader Conceptions of Development: Amartya Sen
			Political Economy and Economic Progress
			Geography, Education, and Economic Development
		States in Transition
			The Spread of Democracy
			The New World Order and Global Terrorism
			The Spread of Market-Based Systems
		The Nature of Economic Transformation
			Deregulation
			Privatization
			Legal Systems
		Implications of Changing Political Economy
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Egypt, The Troubled Giant
	Chapter Three Differences in Culture
		Opening Case: Business Culture in China
		Introduction
		What Is Culture?
			Values and Norms
			Culture, Society, and the Nation-State
			The Determinants of Culture
		Social Structure
			Individuals and Groups
			Social Stratification
		Religious and Ethical Systems
			Christianity
			Islam
			Hinduism
			Buddhism
			Confucianism
		Language
			Spoken Language
			Unspoken Language
		Education
		Culture and the Workplace
		Cultural Change
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Panasonic and Japan’s Changing Culture
	Chapter Four Ethics in International Business
		Opening Case: Working Conditions in a Chinese Factory
		Introduction
		Ethical Issues in International Business
			Employment Practices
			Human Rights
			Environmental Pollution
			Corruption
			Moral Obligations
		Ethical Dilemmas
		The Roots of Unethical Behavior
			Personal Ethics
			Decision-Making Processes
			Organizational Culture
			Unrealistic Performance Expectations
			Leadership
		Philosophical Approaches to Ethics
			Straw Men
			Utilitarian and Kantian Ethics
			Rights Theories
			Justice Theories
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Siemens Bribery Scandal
PART THREE Cross-Border Trade and Investment
	Chapter Five International Trade Theory
		Opening Case: Bangladesh’s Textile Trade
		Introduction
		An Overview of Trade Theory
			The Benefits of Trade
			The Pattern of International Trade
			Trade Theory and Government Policy
		Mercantilism
		Absolute Advantage
		Comparative Advantage
			The Gains from Trade
			Qualifications and Assumptions
			Extensions of the Ricardian Model
		Heckscher-Olin Theory
			The Leontief Paradox
		The Product Life-Cycle Theory
			Evaluating the Product Life-Cycle Theory
		New Trade Theory
			Increasing Product Variety and Reducing Costs
			Economics of Scale, First-Mover Advantages, and the Pattern of Trade
			Implications of New Trade Theory
		National Competitive Advantage: Porter’s Diamond
			Factor Endowments
			Demand Conditions
			Related and Supporting Industries
			Firm Strategy, Structure, and Rivalry
			Evaluating Porter’s Theory
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Logitech
		Appendix A International Trade and the Balance of Payments
	Chapter Six The Political Economy of International Trade
		Opening Case: The Global Financial Crisis and Protectionism
		Introduction
		Instruments of Trade Policy
			Tariffs
			Subsidies
			Import Quotas and Voluntary Export Restraints
			Local Content Requirements
			Administration Policies
			Antidumping Policies
		The Case for Government Intervention
			Political Arguments for Intervention
			Economic Arguments for Intervention
		The Revised Case for Free Trade
			Retaliation and Trade War
			Domestic Politics
		Development of the World Trading System
			From Smith to the Great Depression
			1947–1979: GATT, Trade Liberalization, and Economic Growth
			1980–1993: Protectionist Trends
			The Uruguay Round and the World Trade Organization
			The Future of the WTO: Unresolved Issues and the Doha Round
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Why Did Global Food Prices Rise?
	Chapter Seven Foreign Direct Investment
		Opening Case: Walmart in Japan
		Introduction
		Foreign Direct Investment in the World Economy
			Trends in FDI
			The Direction of FDI
			The Source of FDI
			The Form of FDI: Acquisitions versus Greenfield Investments
		Theories of Foreign Direct Investment
			Why Foreign Direct Investment?
			The Pattern of Foreign Direct Investment
			The Eclectic Paradigm
		Political Ideology and Foreign Direct Investment
			The Radical View
			The Free Market View
			Pragmatic Nationalism
			Shifting Ideology
		Benefits and Costs of FDI
			Host-Country Benefits
			Host-Country Costs
			Home-Country Benefits
			Home-Country Costs
			International Trade Theory and FDI
		Government Policy Instruments and FDI
			Home-Country Policies
			Host-Country Policies
			International Institutions and the Liberalization of FDI
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Spain’s Telefonica
	Chapter Eight Regional Economic Integration
		Opening Case: NAFTA and Mexican Trucking
		Introduction
		Levels of Economic Integration
		The Case for Regional Integration
			The Economic Case for Integration
			The Political Case for Integration
			Impediments to Integration
		The Case Against Regional Integration
		Regional Economic Integration in Europe
			Evolution of the European Union
			Political Structure of the European Union
			The Single European Act
			The Establishment of the Euro
			Enlargement of the European Union
		Regional Economic Integration in the Americas
			The North American Free Trade Agreement
			The Andean Community
			Mercosur
			Central American Common Market, CAFTA, and CARICOM
			Free Trade Area of the Americas
		Regional Economic Integration Elsewhere
			Association of Southeast Asian Nations
			Asia-Pacific Economic Cooperation
			Regional Trade Blocs in Africa
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: The European Energy Market
PART FOUR Global Money System
	Chapter Nine The Foreign Exchange Market
		Opening Case: Billabong
		Introduction
		The Functions of the Foreign Exchange Market
			Currency Conversion
			Insuring against Foreign Exchange Risk
		The Nature of the Foreign Exchange Market
		Economic Theories of Exchange Rate Determination
			Prices and Exchange Rates
			Interest Rates and Exchange Rates
			Investor Psychology and Bandwagon Effects
			Summary of Exchange Rate Theories
		Exchange Rate Forecasting
			The Efficient Market School
			The Inefficient Market School
			Approaches to Forecasting
		Currency Convertibility
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Caterpillar Tractor
	Chapter Ten The International Monetary System
		Opening Case: Economic Turmoil in Latvia
		Introduction
		The Gold Standard
			Mechanics of the Gold Standard
			Strength of the Gold Standard
			The Period between the Wars, 1918–1939
		The Bretton Woods System
			The Role of the IMF
			The Role of the World Bank
		The Collapse of the Fixed Exchange Rate System
		The Floating Exchange Rate Regime
			The Jamaica Agreement
			Exchange Rates since 1973
		Fixed versus Floating Exchange Rates
			The Case for Floating Exchange Rates
			The Case for Fixed Exchange Rates
			Who Is Right?
		Exchange Rate Regimes in Practice
			Pegged Exchange Rates
			Currency Boards
		Crisis Management by the IMF
			Financial Crises in the Post–Bretton Woods Era
			Mexican Currency Crisis of 1995
			The Asian Crisis
			Evaluating the IMF’s Policy Prescriptions
		Focus on Managerial Implications
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Argentina’s Monetary Crisis
PART FIVE Competing in a Global Marketplace
	Chapter Eleven The Strategy of International Business
		Opening Case: Avon Products
		Introduction
		Strategy and the Firm
			Value Creation
			Strategic Positioning
			Operations: The Firm as a Value Chain
			Organization: The Implementation of Strategy
			In Sum: Strategic Fit
		Global Expansion, Profitability, and Profit Growth
			Expanding the Market: Leveraging Products
			Location Economies
			Experience Effects
			Leveraging Subsidiary Skills
			Profitability and Profit Growth Summary
		Cost Pressures and Pressures for Local Responsiveness
			Pressures for Cost Reductions
			Pressures for Local Responsiveness
		Choosing a Strategy
			Global Standardization Strategy
			Localization Strategy
			Transnational Strategy
			International Strategy
			The Evolution of Strategy
		Strategic Alliances
			The Advantages of Strategic Alliances
			The Disadvantages of Strategic Alliances
			Making Alliances Work
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: The Evolving Strategy of IBM
	Chapter Twelve Entering Foreign Markets
		Opening Case: General Motors in China
		Introduction
		Basic Entry Decisions
			Which Foreign Markets?
			Timing of Entry
			Scale of Entry and Strategic Commitments
			Market Entry Summary
		Entry Modes
			Exporting
			Turnkey Projects
			Licensing
			Franchising
			Joint Ventures
			Wholly Owned Subsidiaries
		Selecting an Entry Mode
			Core Competencies and Entry Mode
			Pressures for Cost Reductions and Entry Mode
		Greenfield Venture or Acquisition?
			Pros and Cons of Acquisition
			Pros and Cons of Greenfield Ventures
			Making a Choice
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: General Electric’s Joint Ventures
	Chapter Thirteen Exporting, Importing, and Countertrade
		Opening Case: Vellus Products
		Introduction
		The Promise and Pitfalls of Exporting
		Improving Export Performance
			An International Comparison
			Information Sources
			Utilizing Export Management Companies
			Export Strategy
		Export and Import Financing
			Lack of Trust
			Letter of Credit
			Draft
			Bill of Lading
			A Typical International Trade Transaction
		Export Assistance
			Export–Import Bank
			Export Credit Insurance
		Countertrade
			The Incidence of Countertrade
			Types of Countertrade
			The Pros and Cons of Countertrade
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: MD International
	Chapter Fourteen Global Production, Outsourcing, and Logistics
		Opening Case: The Rise of the Indian Automobile Industry
		Introduction
		Strategy, Production, and Logistics
		Where to Produce
			Country Factors
			Technological Factors
			Product Factors
			Locating Production Facilities
		The Strategic Role of Foreign Factories
		Outsourcing Production: Make-or-Buy Decisions
			The Advantages of Make
			The Advantages of Buy
			Trade-offs
			Strategic Alliances with Suppliers
		Managing a Global Supply Chain
			The Role of Just-in-Time Inventory
			The Role of Information Technology and the Internet
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Building the Boeing
	Chapter Fifteen Global Marketing and R&D
		Opening Case: Ford’s Marketing Goes Global
		Introduction
		The Globalization of Markets and Brands
		Market Segmentation
		Product Attributes
			Cultural Differences
			Economic Development
			Product and Technical Standards
		Distribution Strategy
			Differences between Countries
			Choosing a Distribution Strategy
		Communication Strategy
			Barriers to International Communication
			Push versus Pull Strategies
			Global Advertising
		Pricing Strategy
			Price Discrimination
			Strategic Pricing
			Regulatory Influences on Prices
		Configuring the Marketing Mix
		New-Product Development
			The Location of R&D
			Integrating R&D, Marketing, and Production
			Cross-Functional Teams
			Building Global R&D Capabilities
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Microsoft in India
	Chapter Sixteen Global Human Resource Management
		Opening Case: AstraZeneca International
		Introduction
		The Strategic Role of International HRM
		Staffing Policy
			Types of Staffing Policy
			Expatriate Managers
			The Global Mind-set
		Training and Management Development
			Training for Expatriate Managers
			Repatriation of Expatriates
			Management Development and Strategy
		Performance Appraisal
			Performance Appraisal Problems
			Guidelines for Performance Appraisal
		Compensation
			National Differences in Compensation
			Expatriate Pay
		International Labor Relations
			The Concerns of Organized Labor
			The Strategy of Organized Labor
			Approaches to Labor Relations
		Key Terms
		Summary
		Critical Thinking and Discussion Questions
		Research Task
		Closing Case: Lenovo
GLOSSARY
ENDNOTES
PHOTO CREDITS
INDEX
WORLD MAP
ACRONYMS
COUNTRIES AND THEIR CAPITALS